Creativity ≠ Innovation Creativity ≠ Innovation How Organizations Can Really How Organizations Can Really Make Innovation Happen Make Innovation Happen Barbara Kivowitz Barbara Kivowitz Senior Partner Senior Partner im21 im21 : : innovation/measurement/21 innovation/measurement/21 st st century century [email protected][email protected]
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Creativity Innovation How Organizations Can Really Make Innovation Happen Barbara Kivowitz Senior Partner im21 : innovation/measurement/21 st century [email protected].
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Creativity ≠ InnovationCreativity ≠ InnovationHow Organizations Can Really Make How Organizations Can Really Make
Innovation HappenInnovation Happen
Barbara KivowitzBarbara KivowitzSenior PartnerSenior Partner
im21im21: : innovation/measurement/21innovation/measurement/21stst century century
“The greater the amount of innovation, the greater the market
and financial performance” Soo, Devinney, Midgley & Deering (2002)
Innovation & FinancialPerformance
What have innovative companies done?What have innovative companies done? 3M3M – corporate goal of achieving 30% of sales from newer – corporate goal of achieving 30% of sales from newer
products. "3M 15% Rule" allows employees to spend 15% of their products. "3M 15% Rule" allows employees to spend 15% of their time on projects of their own choosingtime on projects of their own choosing
GoogleGoogle – holds 8 brainstorming sessions a year with 100 – holds 8 brainstorming sessions a year with 100 engineers. All engineers can dedicate 20% of their time to pet engineers. All engineers can dedicate 20% of their time to pet projectsprojects
ToyotaToyota – OObeya = big, open office. Brings together people – OObeya = big, open office. Brings together people from all parts of the company every month to discuss design, from all parts of the company every month to discuss design, costs, mistakes, bottlenecks. Has saved Toyota millions of costs, mistakes, bottlenecks. Has saved Toyota millions of dollarsdollars
P&GP&G - shifted from R&D as the innovation pipeline to C&D, - shifted from R&D as the innovation pipeline to C&D, "Connect and Develop.” P&G acquires 50% of its innovations "Connect and Develop.” P&G acquires 50% of its innovations outside the company, resulted in 3 successful new products in outside the company, resulted in 3 successful new products in the first 6 monthsthe first 6 months
WhirlpoolWhirlpool - group of employees serve as innovation consultants - group of employees serve as innovation consultants to assess best ideas and strategies to market. Employees submit to assess best ideas and strategies to market. Employees submit ideas via a corporate-wide virtual bulleting board. A third of ideas via a corporate-wide virtual bulleting board. A third of senior leader pay is tied to innovation. Whirlpool had record senior leader pay is tied to innovation. Whirlpool had record results in 2005results in 2005
GEGE – GE WorkOut – 60% of projects initiated in this creativity – GE WorkOut – 60% of projects initiated in this creativity program become successful productsprogram become successful products
Barriers to Creative ThinkingBarriers to Creative Thinking
Functional fixednessFunctional fixedness Previous experiencePrevious experience Excessive faithExcessive faith Intolerance of ambiguityIntolerance of ambiguity ParadigmsParadigms EmotionEmotion
andand
AssumptionsAssumptions
Creativity is the ability to modify self-imposed constraints.
The Astronaut Pen The Astronaut Pen (urban legend #1)(urban legend #1)
During the space race in the 1960’s NASA During the space race in the 1960’s NASA was faced with a major problem. The was faced with a major problem. The astronauts needed a pen that would work in astronauts needed a pen that would work in zero gravity. NASA spent $1.5 million zero gravity. NASA spent $1.5 million developing the “Astronaut Pen.” It enjoyed developing the “Astronaut Pen.” It enjoyed minor commercial success back on Earth.minor commercial success back on Earth.
The Russians were faced with the same The Russians were faced with the same problem.problem.
They used a pencil.They used a pencil.
Let’s Do Some MathLet’s Do Some MathLet’s Do Some MathLet’s Do Some Math
Let’s Do Some MathLet’s Do Some MathLet’s Do Some MathLet’s Do Some Math10001000 404010001000 303010001000 202010001000 101041004100
A radio conversation with the US Chief of Naval A radio conversation with the US Chief of Naval OperationsOperations (urban legend #2)(urban legend #2)
NAVYNAVY: Please divert your course 15 degrees to the : Please divert your course 15 degrees to the North to avoid a collisionNorth to avoid a collision
CIVILIANCIVILIAN: Recommend you divert YOUR course 15 : Recommend you divert YOUR course 15 degrees to the south to avoid a collisiondegrees to the south to avoid a collision
NAVYNAVY: This is the captain of a US Navy ship. I say : This is the captain of a US Navy ship. I say again, divert YOUR courseagain, divert YOUR course
CIVILIANCIVILIAN: No, I say again, you divert YOUR course: No, I say again, you divert YOUR course
NAVYNAVY: THIS IS THE AIRCRAFT CARRIER ENTERPRISE. : THIS IS THE AIRCRAFT CARRIER ENTERPRISE. WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT YOUR COURSE NOW!YOUR COURSE NOW!
CIVILIANCIVILIAN: This is a lighthouse. Your call. : This is a lighthouse. Your call.
Exercise: Exercise:
How do you spell your nameHow do you spell your name How else could you spell it?How else could you spell it?
INNOVATION:INNOVATION: The process of The process of
turning ideas turning ideas into moneyinto money
•Implementation of great ideas•Convergent thinking•Quality driven process
•Implementation of great ideas•Convergent thinking•Quality driven process
The ProcessThe ProcessTime
Number of Ideas
Creativity
Innovation
The ProcessThe ProcessTime
Number of Ideas
Creativity
Innovation
Problems:Problems:
• TV networks & TV networks & advertisers hate TiVo’s advertisers hate TiVo’s ad skipping ad skipping functionalityfunctionality
• TiVo loses advertising TiVo loses advertising revenuerevenue
• Customers miss ads Customers miss ads that could actually be that could actually be usefuluseful
Can you help TiVo?
““Of all the core functions of Of all the core functions of most companies, innovation most companies, innovation has the most competitive has the most competitive value —and is managed with value —and is managed with the least discipline.”the least discipline.”
Booz Allen HamiltonBooz Allen Hamilton
Data
Reframe
Complete Solution Set
Idea Clusters
Project Plan
Risk Analysis
CLARIFY IDEATE DEVELOP IMPLEMENTPinpoint the problem to
solve
Come upwith new
ideas
Refine ideas into strongsolutions
Put the plan into action
Sta
kehold
er
Pla
nCreative Problem Solving ProcessCreative Problem Solving Process
Mess
THE MESS: THE MESS:
How can we make our space look better?How can we make our space look better?
ClarifyClarify What data do we need in order to fully What data do we need in order to fully
• 5W’s & an H5W’s & an H WhoWho WhatWhat WhereWhere WhenWhen WhyWhy HowHow
How might we reframe our original How might we reframe our original problem statement to make it more problem statement to make it more solvable, profitable, or innovative?solvable, profitable, or innovative?
REFRAME: How can we make our REFRAME: How can we make our space look better?space look better?
How can we create a “green” space?How can we create a “green” space?
In what ways might we construct our In what ways might we construct our space to promote productivity?space to promote productivity?
In what ways might we construct our In what ways might we construct our space to promote creativity?space to promote creativity?
How can we foster knowledge sharing How can we foster knowledge sharing through the use of open space design?through the use of open space design?
How can we eliminate the need for space?How can we eliminate the need for space?
IdeateIdeate
Go for quantity & explore a wide Go for quantity & explore a wide range of ideasrange of ideas• Tools:Tools:
BrainwritingBrainwriting SALESALE
Converge and chose the ideas that Converge and chose the ideas that have the greatest potentialhave the greatest potential
DevelopDevelop
Strengthen the ideas from multiple Strengthen the ideas from multiple angles – customer experience, angles – customer experience, features, marketing, sales, etc.features, marketing, sales, etc.